Tamil Nadu: Praveen Chakravarty’s statement on the financial situation; emphasis on reforming the revenue system.
Tamil Nadu: Rajya Sabha member Praveen Chakraborty has commented on the financial policy of the government regarding the economic condition and revenue management of Tamil Nadu. Speaking to reporters at the Chennai airport on Thursday, he said that the state government would be able to handle its financial situation in a better way only when the revenue fully reaches the government treasury and its proper utilization is ensured.
Praveen Chakraborty said that the white paper released by the Tamil Nadu government reveals many important facts regarding the economic condition of the state. According to him, it is clear from the report that the state has a huge debt burden and the pressure of interest payment is also very high. He said that in the current situation, out of every Rs 100 of income, about Rs 22 is spent only on paying interest, while about Rs 40 goes on mandatory government expenses. In such a situation, the state is left with limited resources for development works and public welfare schemes.
He raised the question that when a large amount of revenue goes into already fixed expenses and interest payments, how would enough money be left to meet the needs of the common people and implement new schemes. According to him, this situation is not favorable for the state in the long run and it needs improvement.
Comparing the state with other states, he said that the ratio of interest burden and mandatory expenses is higher in Tamil Nadu, which is further increasing the financial pressure. He alleged that the state’s revenue is not fully reaching the government treasury and a part of it is being misappropriated at certain levels. He said that unless this situation is controlled, improvement in the financial situation will not be possible.
Responding to a question on possible political cooperation with the Congress party, Praveen Chakraborty said that it is expected that the Congress will participate in the upcoming local body elections in collaboration with the Tamil Nadu government. However, he did not share any detailed political strategy on this.
He also said that to make the economic condition of the state stable and strong, it is necessary to make the revenue system transparent and effective. According to him, unless the revenue comes to the government treasury in the right way, it will not be easy to handle the financial situation.
In the end he reiterated that the Tamil Nadu government has the capacity to handle its financial position, but for this it is very important to improve the revenue collection and its proper utilization. He said that the economic condition of the state can be improved only through proper financial management and transparency.